Market Discussions

Hello,

I have been browsing MD for some time and decided to try this side of the game out. I decided to do this with offering a loan instead of asking for one

Loan rules:
- One client for 1 bil ISK, just to keep it simple;
- Fixed interest of 5% for the whole duration of the loan;
- Duration is 30 days max, meaning that it's OK to return the loan earlier. However, if you decide to pay the loan back earlier, the interest will stay the same and must be paid in full;

Collateral rules:
- Collateral will be accepted in Jita, Dodixie, Rens, Hek or Amarr. Nearby continuous highsec systems (up to 4 jumps) will be considered on case-by-case basis;
- All collateral items should be in one station;
- I will not set a hard limit on the amount of different types of items that can go into collateral, but keep in mind that dumping of dozens of different types of items will most likely not be accepted. Please, keep it simple ;
- One huge stack of items (for example: 200mil units of Tritanium) is allowed and actually preferred;

- Ship BPO's will be generally accepted as collateral by default (except for the huge amounts of low valued BPOs, like frigates). Other BPOs will be considered on case-by-case basis.
- Faction ship BPCs will be considered on case-by-case basis;
- Ships will be accepted with exception of newly introduced SoE and Mordus ships;
- PLEX will be accepted;
- Any other BPCs will NOT be accepted, including tech 2, tech 3 and faction;
- Clothes and vanity items will NOT be accepted;
- POSes, POS modules and structures will NOT be accepted;
- Other items will be considered on case-by-case basis. Please, keep in mind that items with tendency of significant price drop will be rejected automatically. This includes but is not limited to meta variants of modules (because of the re-processing changes in Crius);

- Collateral for PLEX is 5% lower than Jita "Buy" price;
- Collateral for BPOs is 10% lower than NPC market price, regardless of whether the blueprints have been researched or not;
- Collateral for faction ship BPCs will be offered on case-by-case basis, but will generally be 15% lower than the lowest contract in Jita. Exceptions to this collateral evaluation are ships that were relatively recently introduced (SoE and Mordus factions) in which case a custom collateral value will be offered;
- Collateral for ships is 15% lower than Jita "Buyers" price. Rigs on ships do not add to the collateral value of the ship;
- Collateral for other items is 15% lower than the Jita "Buyers" price at the time of the appraisal of items, regardless of where the items used as a collateral are located;

- If you have a single item whose collateral value is more than 1 bil ISK (for example, higher tier battleship BPO), I could extend the loaned amount to match the collateral for up to 1.5 bil ISK total if you want it or accept it as a collateral for 1 bil ISK loan. The interest either way will stay at 5% of the total amount loaned.


Loan process:

1) Please send me an eve-mail or post in in this thread with the list of items that you are willing to offer as a collateral and their location.

2) I will take a look at the list of items and reply to you by eve-mail if the collateral is acceptable or not;

3) Once we agree on the collateral, you will create a private item exchange contract to me with collateral items and loan amount included. Please set the actual contract length at minimum of 3 days.

4) I will then review and accept the contract if it matches the list of collateral items and loan amount we agreed through eve-mail and the 30 days loan term starts;

5) Once you are ready to re-pay the loan, you can contact me and I will create the private item exchange contract with 1 week expiration with your original collateral items included and for the amount of base loan value + interest;

6) The return contract will be created automatically after 30 days of accepting the original loan contract and be set to 1 week expiration. If you fail to accept the return contract after 1 week, the collateral will be considered forfeited and loan contract will be over. (So, you'll basically get 30 days + 1 week to return the loan)

This certainly seems interesting. What stops you from just using this as a way of reselling the items provided as collateral? since the way you undervalue them makes it easy for you to just flip em.

This surely is an interesting take on MD loans, well done there.

your 15% sounds understandable if you're ready to accept volatile items such as minerals etc, since these items have a tendency to hop around over time. however, with blueprints I see no reason why you would go higher than 10% collateral. especially when you are not counting BPO research, you will definitely be able to liquidate the collateral at no loss when you can offer them 10% below NPC.
your response about 15% of 1b being 150 mil so not worth your time to steal actually does ring a few alarmbells. looking around on the MD forums, you see dozens of loan requests at similar "no risk" ammounts. for you, a singular 150 mil would not be worth it, but considering you may be able to run 10 of these loans at a time, thats an easy 1.5 bil overvalue you'll be holding there.
So my question is this: for the sake of legitimacy of your loan offering, could you not find a mutually trusted third party to hold the collateral for you? I don't know you, nor do I know your reputation. simply being a 2007 main does not mean too much to me, however you offering a neutral third party like chribba to hold all your collective collateral would be a tripple A move.

remember, not trying to flame you here. I truly am hoping you are the real deal here.

EDIT
to put it a bit more blunt, what makes you any different from a 150 mil uncollateralized loan?

If someone defaults on you, the collateral is yours to with as you please. If you insist on selling researched BPOs for cheap then feel free to give me a shout .

It doesn't look like it's been said yet, but 5% is very high on a fully collateralized loan. I believe the average rate is currently ~2%.

Some great policies here though, aside from your interest %, and I'll probably be incorporating some of them into my own policies. Goodluck!

Going back through 10 pages of MD posts, the average interest rate on, legitimate, fully collateralized loans, is 2.69%

The OP can charge what he wants for his lending service, but if a pilot can post their own thread, with their own terms, and an ROI of ~2%, the likelihood of attracting legitimate debtors through this service is fairly low; the OP may have a hard time placing funds, and might get stuck with pilots looking to quickly dump their assets.

Exactly my reasoning

I think that 5% for a micro loan is not that bad, especially since we have a couple of threads where collateralized loan requests are offering 7,5% .

It's whole another game if the offered amount is even 10bil, but I have some reserves about stepping right into it with 10bil.

Of course, numbers can be tweaked in the future with a bit more of investment, but I think that this offer is good for both parties for the start. Oh... and I'll change the BPO collateral to +10% since it does look safe enough

Your reputation has always counted for alot here in the MD, when it comes to getting funding and the interest rate you can aquire.
Not something ive always agreed with. When you see people willing to loan isk a very low interest rate, you obviously try to be treated the sameway, when you are looking to borrow isk. You can be pelted for your efforts, called a buffoon for even thinking that you deserve a similiar low rate.

There is a caste system here in the MD, where the higher caste demand the lower caste have to pay higher interest rates. Ive always refused to do this and demanded equal rights. You should to unless you are willing to pay the higher rates.

My last loan 3.5 bill (no collaterall) rate 3%.

I'm not entirely certain that I understand your position. Are you criticizing or endorsing my offer?

And, as flakeys said above, I'm not sure if you understand that I'm not asking for a loan, but rather to lend ISK to someone else.

Thanks for the clarification. I understand now

I agree that players should look for the best offer. I think I've offered a reasonably good one and intend to adjust the numbers a bit in the future offerings based on the feedback I get here. After all, at the beginning of my MD gameplay the most valuable thing that I'm expecting to get is the experience. With better experience, I can offer better services and more competitive terms